PSYCHO SINS
This Section focuses on the main psychological keys to successful trading and consistent profits day in and day out.
For me I get into a rut of excepting SMALL loses. I put on solid win streaks but tend to get thrown off by the inevitable small loss day that is sure to come. When this happens my perception and thus reaction goes into a kind of vengeance mode causing me to break my rules and go outside of myself usually resulting a much much larger loss than originally created. This is Gods way of saying hey i tried to give you a lesson with minimal pain, but since you cant except that then take this!! This will get your attention!! Welcome loses as clues to maybe STOP for the Day or Take another view of the market.
BE THE OBSERVER NOT THE REACTOR
Attachment = OVER TRADING - Over attachment to the ebb and flows of the market will cost you big time. When you become over attached you tend to OVER TRADE. Seeking to catch each and every opportunity thrown your way, while their is ample opportunity at all times you MUST FOCUS in on YOUR OWN EDGE. If it is not present then YOU SHOULD NOT BE PRESENT!! Its ok to NOT put on any trades for the day. See it as a much needed day off, trading should not be a game but a JOB that constantly provides instant results for your effort. Regardless of the Results MINIMALISM WILL ALWAYS WIN OUT if you apply the Rules. 4 Sequences Max all Recorded.
FORGIVING YOURSELF
Forgiving yourself for mistake is crucial if you are to push on to the next day. There is always an opportunity to right a wrong, but if you wallow in sorry and anguish for mistakes you will fuel the environment for making more mistakes, usually of a similar nature as the first. LET IT GO!!
GREED
When your fortunate to take out your share of the pie, DON'T BE GREEDY. This doesn't mean to skip opportunities within the 90 grind, but when things go in your favor (ie.1S1K)be thankful and don't push the day. Your done for the day when you get 1S1K 6+ pts etc.
EMOTIONS
controlling the emotions is Paramount before during and after entering a trade. Fear, over confidence, Anxiousness, vengeance, apathy can all cause you to initiate a position outside your true understanding of the market and its signals. Emotions distort your perspective often times causing you to focus on things that fuel the emotion but usually are not real threats. While in a trade, Overconfidence, Greed, and Hope can distort reality causing you to overshoot profits targets and except larger losses. After Exiting a trade Anger, Regret, disappointment and elation can set you up for future mistakes also due to distorted perspective.
- Prior to entering a trade one should be calm and observing but not anxious.
- While holding a position one should allow room to fluctuate but focus on market factors that can provide clues to hold or exit.
- After Exiting a trade one should be aware of the responses, the ideal response is NONE, Forget it and go back to a calm observational perspective as if you had nothing to lose (looking over someone else's shoulder)
